Creating Continuous Flow and Internal Transport Optimization at IKEA Distribution Center, Älmhult

Abstract: The objective of this project is to improve productivity and efficiency for the inbound material handling operations in the warehouse of DC Älmhult. After three weeks pre-study in place of the distribution center, the authors have observed several problems existing in the current production, among which three types of wastes are found and analyzed by using VSM that are pick and drop, operator waiting time and inefficient transport. Two typical cases chosen from the inbound production are analyzed to reflect the current process and address problems. Fish-bone tool is used to identify wastes and roots. To eliminate or reduce the wastes, recommendations and solutions are developed by creating continuous flow combining with internal transport optimization. Future-state VSMs are drawn based on the suggested changes in line with continuous flow. Different productions models are simulated by elaborately developed excel sheets. A „distance table‟ is developed by using Microsoft Excel to help the loading or unloading leaders with the gate steering function so as to minimize internal transport distance. A new layout of the conveyor system is also suggested to lower the idle transport rate.